Assessment of the Effects of the COVID-19 Pandemic on Tourism and Hospitality Industry in the United Kingdom

Abstract

This study investigated and provided an understanding of effects of the COVID-19
pandemic on the tourism and hospitality industry, in the United Kingdom. For this
research, explanatory research design was adopted. The survey followed the
standard measures comprising 250 structured questionnaires, divided into four (4)
sections, namely demographic profile; COVID-19 behaviour; Tourists’ attitude and
effects of the COVID-19 pandemic. With tourism and hospitality operators of
national importance selected through proportionate stratified sampling technique
as the respondents, only 207 feedbacks were retrieved, while data from HM
Revenue and Customs (HMRC) was equally be reviewed. Data were analysed
through Man-Whitney (U), and Kruskal-Wallis (H) test, Kolmogorov-Smirnov and
Factor analysis with Varimax rotation (reliability and convergent validity of
construct). Finally, Ordinal regression (PLUM) and Multinomial Logistic Model (MLR) were applied for assessing the influences of effects of the COVID-19
pandemic on tourism and hospitality industry, in the United Kingdom. Findings
revealed a high level (0.84%) of Covid-19’s effect on tourism and hospitality
operators. More than 60% of respondents correctly answered majority of questions,
but few cases namely time, value of money and less corporate tax, were major
negative (-0.45) effects of the pandemic on their operations. Except share for the
transport-markets, regulatory frameworks and corporate tax, level of effects of the
pandemic were not varying statistically according to area of studies. It was also
found that maximum selected indicators of effects of the pandemic were dependent
on control variables except source of income, attended patronage and profit returns.
Data further showed that transport and logistics were the worse-hit by the
pandemic, wherein respondents recorded 100% losses; significant at ?=0.859 and
?=0.897, respectively. It can be concluded that the COVID-19 pandemic had a
significant effect on the tourism and hospitality industry in the United Kingdom.
Increased level of education and awareness are really necessary to forestall any
future outbreaks’ effect of such magnitude on the said industry.